Mortgage Securitizer Sentenced For Altering Credit On Mortgage Loans

admin —  May 13, 2009 — 2 Comments

Steven Gordon, 47, Miami, Florida was sentenced to 36 months’ imprisonment for engaging in a five year scheme to inflate the value of mortgage loans to increase his commission compensation.

Prior to his dismissal in 2006, Gordon was a principal at Bayview Financial, LP (Bayview Financial), a Coral Gables-based finance company that buys portfolios of loans from lending institutions. Bayview Financial pooled these loans into newly formed business entities, called “special purpose entities,” and then issued securities backed by those loans to the investing public. During fiscal years 2006, 2005 and 2004, respectively, Bayview Financial and its affiliates securitized approximately $2.056 billion, $0.954 billion and $1.428 billion, in offerings of residential and commercial mortgage loans, including $1.989 billion, $0.884 billion and $1.243 billion of residential mortgage loans.

While employed at Bayview Financial, defendant Gordon held the title of Director of Residential Acquisitions. One of Gordon’s primary duties was to negotiate the purchase of thousands of loans for Bayview Financial’s residential mortgage securitization program. Gordon’s incentive compensation was based, in part, on his ability to buy those loans at a low cost.

Gordon admitted in open court that between 2001 and 2006, he engaged in a scheme to defraud Bayview Financial, in which he regularly altered credit information affecting the value of more than 2,800 loans acquired for Bayview Financial’s residential mortgage securitization program. Gordon’s fraudulent scheme caused Bayview Financial to pay him more than $2.8 million in excessive and undeserved bonuses.

R. Alexander Acosta, United States Attorney for the Southern District of Florida, and Jonathan I. Solomon, Special Agent in Charge, Federal Bureau of Investigation, Miami Field Office made the announcement. Mr. Acosta commended the investigative efforts of the FBI and the Miami Regional Office of the Securities and Exchange Commission. Mr. Acosta also recognized Bayview Financial’s outstanding cooperation with this investigation. This matter is being handled by Assistant United States Attorney Ryan Dwight O’Quinn.


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2 responses to Mortgage Securitizer Sentenced For Altering Credit On Mortgage Loans

  1. My home was appraised at 250,000. Wells Fargo presented it in the security package as being appraised at 260,000. Might not seem like much, but if more of the homes in my security package had the same thing done, that could severely alter the true value ofthe package.
    What’s the difference betweenthis sleaze and Wells Fargo? They are a National Bank….and will get away with it.

  2. What a greedy sleaze-bag! Once he’s imprisoned, I hope he quickly becomes some big sweaty ax murder’s bitch and gimp.

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